Abstract
Effort is made to access the effect
of formal accounting reporting on the effective management of a business,
financial accounting covers activities related to the preparation of reports
which are known as financial statement. These statements show the status of the
business enterprise at a particular time. The enterprise activities show the
result of profit/loss during the most recent period and the flow of resources
occurring within the enterprise during the same period. The objective of this
research is to find out what relevance is financial reporting to business
enterprise. While chapter two centers on the literature review, the data was
analyzed using simple percentage. It is recommended among others that
management should aim at profit optimization in other to keep the business
going and also to have a reasonable return investment of stock holders.
TABLE OF CONTENTS
Title Page
Certification
Dedication
Acknowledgement
Abstract
Table of Contents
Chapter One: Introduction
1.1
Background
to the Study
1.2
Statement
of the Problem
1.3
Research
Questions
1.4
Objectives
of the Study
1.5
Statement
of Hypothesis
1.6
Significance
of the Study
1.7
Scope
of the Study
1.8
Limitations
of the Study
1.9
Definition
of Terms
Chapter Two: Review of Related Literature
2.1
Introduction
2.2
Users
of Financial Reporting
2.3
Characteristics
of good Accounting Information
2.4
Management
of Information
2.5
Basic
Accounting Concepts
2.6
The
Financial Accounting Branch
2.7
Other
Accounting Branches
Chapter Three: Research Method and Design
3.1
Introduction
3.2
Research
Design
3.3
Description
of Population of the Study
3.4
Sample
Size
3.5
Sampling
Techniques
3.6
Sources
of Data Collection
3.7
Method
of Data Presentation
3.8
Method
of Data Analysis
Chapter Four: Data Presentation, Analysis and Hypothesis
Testing
4.1
Introduction
4.2
Presentation
and Analysis of Data
4.3
Hypothesis
Testing
Chapter Five: Summary of Findings, Conclusion and
Recommendations
5.1
Introduction
5.2
Summary
of Findings
5.3
Conclusion
5.4
Recommendations
References
Appendices
CHAPTER ONE
INTRODUCTION
1.1
Background to the Study
Financial
reporting covers those activities related to the preparation of certain reports
which hark own as financial statement. These statement reports the financial
status of a firm at a particular time, the firms activities and resulting
profit or losses or during the most recent period and the flow of resources
occurring within the firm during the same period.
The
statement made by Montgomery (1998) gives us an idea on the meaning of
financial accounting. However this question arises, what are the effects of
these financial accounting reports in the management of business enterprise?
The answer poses a problem which the paper will seek to solve because not all business
person understand the impact of financial reporting information on the
management of their business, some manages business intuitively, others like
defaulters who disobey road traffic, disobey the warning communicated by
financial reporting information and end up in a ‘business accident’.
There
are other sources of information which have impact on the management of
business and the combination of those sources gives an information system in a
complex nature “it must not be thought that accounting of any firm is the
management control system, instead it is part of it! But accounting information
is the only system through which both managers and external users get a picture
of the organization as a total entity.
1.2
Statement of the Problem
Finance
is of fundamental importance to the business organization. The financial
reporting system in most business enterprise does not portray fully the
principle of accounting systems. The flows of information, the cost of
collecting any information and the internal control procedures have some loop
holes.
In
reality, it would be impossible for the researcher to study all the
organization. This study involves some typical financial reporting. It’s effect
on the effective management of business enterprise. The researcher will
carryout an empirical study and appraisal of a business financial reporting and
see whether there is room for improvement to be made. It will therefore
involves a review of the financial reporting and its related procedure.
1.3
Research Questions
Research
question of the study have been formulated so that when answered the purpose of
this research work is meant to achieve will be farfetched.
a.
Does
the neglect of financial reporting information has a positive effect on the
effective management of a business enterprise?
b.
Does
the neglect of financial reporting information have a negative effect on the
effective management of a business enterprise?
c.
What
relevant is financial reporting to the business enterprise?
d.
Does
financial reporting has effect on the effective management of business
enterprise?
1.4
Objectives of the Study
The
objective of this research is to find out; what relevance is the financial
reporting to business enterprise, what source of finance are available to the
business enterprise, if financial reporting in an organization adequately has
an impact on the profit earning of that enterprise knowing fully well the goal
of every business is profit optimization.
1.5
Statement of Hypothesis
Hypothesis One
Ho: Financial reporting information has a
negative impact on the effective management of a business enterprise.
Hi: Financial
reporting information has a positive impact on the effective management of a
business enterprise.
Hypothesis Two
Ho: Neglect of financial reporting
information will not have any effect on the business.
Hi: Neglect of financial reporting information
will have effect on the business.
1.6
Significance of the Study
The
significance of the study are:
a.
Examining
the effect of financial reporting as information system.
b.
Directing
the business persons to such effect.
c.
Catering
not only business persons but all persons from neglect of financial reporting.
d.
Encouraging
all to obey the head warning of financial reporting information.
The
following classes of people will find the work as a useful references.
a.
Managers
of companies and any other firm enterprise whether such enterprises are owned
by management or not.
b.
Actual
and potential lenders of money to business enterprise.
c.
Customers
d.
Owners
and shareholders
e.
Government
f.
Other
Researchers
1.7
Scope of the Study
A look
into the document of the business and drawings heavily from such record is
intended. Financial reporting is often regarded as “figure”. Such figures will
be useful to both those who have knowledge of accounting and those who do not.
1.8
Limitation of Study
One of
our main constraints in the course of this project work has actually been in
the area of data collection and the authority to give out information.
The
library and textbook could not provide sufficient information. I then had to
check other libraries and information centers for data required.
Furthermore,
this was not easy to coordinate due to large amount of work involved in
combining class work with research.
1.9
Definition of Terms
The
following are defined in this section.
a.
Effect
b.
Financial
reporting
c.
Management
d.
Business
e.
Sole
proprietorship
a.
Effect
is defined as “to cause something to come into use”, it can therefore be good
or bad.
b.
Financial
reporting is concerned with the recoding and interpreting of transaction for a
business enterprise or other economic unit and the periodic preparation of
various report from such records is also a systematic gathering, summarizing
and interpreting of business transaction in monetary terms such that it
provides information which permits informed judgement by the users of the
information.
c.
Management:
This can be defined as the rational selection of causes of action to optimize
the interrelationship of man, material and money for the survival and growth of
the organization. It can be regarded as the process of getting things done
through other people. A person who manages is called a manager.
d.
Business:
This is a process whereby human, material and capital resources are combined to
earn/satisfy human needs and wants. An entity which carries on such organized
efforts is known as a business entity.
e.
Sole
proprietorship: This is a business owned and operated by one person.
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